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Wednesday, 26 March 2014

KUALA LUMPUR, March 25 (Bernama) -- Association of Islamic Banking Institutions Malaysia (AIBIM) expects to see new products under the investment accounts by end of this year or early next year.

President Datuk Mohd Redza Shah Abdul Wahid said currently the Islamic institutions were doing housekeeping on the deposits products and would transit immediately over the next few months.

It was reported that Islamic financial institutions would embark on an exercise to reclassify Islamic deposits as defined under the Islamic Financial Services Act 2013 (IFSA 2013).

The Act has introduced two major classifications of products for the acceptance of money from customers by Islamic banking institutions -- Islamic deposits and investment accounts.

Mohd Redza said the Act has given Islamic institutions the ability to offer new products to the public.

"Customers will be given sufficient information and time to make their decisions.

"During the transition period, the affected Islamic deposits or accounts will remain at status quo and will continue to be covered by the Malaysia Deposit Insurance Corporation (PIDM)," he told a media conference Tuesday.

Islamic financial institutions would ensure that the transition process was seamless and would not be inconvenient to customers, said Mohd Redza, who is also Chief Executive Officer of Bank Muamalat Malaysia Bhd.

He said Islamic financial institutions would from time to time be in communication to inform their customers of the latest developments, adding that the exercise would be completed by June 30, 2015.

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